COBRA Subsidies Under American Rescue Plan Act

  • On March 11, 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) into law. Among its many provisions, the new law provides for 100 percent premium subsidies for health insurance continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for “assistance eligible individuals” who elect COBRA continuation coverage between April 1, 2021 and September 30, 2021. As of September 30, 2021, the COBRA premium subsidy period has expired.

The information that follows is general information about the program when it was in effect. For additional information, employers should review the U.S. Department of Labor and IRS guidance resources.

Read about 2021 legislation.

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